[Drewsers]

Hi There,

I bought stock 6 months ago and just sold it with a nice profit.

A friend told me that it was a mistake to not hold the stock for one year bc my profit will be treated as income and taxed as such rather than taxed as a capital gain.

Is this true?

 

[stardancer]

No, the proceeds will be subject to the capital gains calculation on schedule 3, then 50% of the total gain will be taxed along with your other income.

Your friend may be getting mixed up with the 30-day rule. If you sell then re-buy a stock within 30 days, and have a loss, you cannot claim the loss at that time.

 

[billiam]

If your an American its true. Google "short term gains" for more info.

If your Canadian, stardancer's comments are correct.

 

[Drewsers]

Thanks for the info.